This study is about production of active material food packaging from natural resources which is xylan. The xylan used were extracted from tobacco stalk using DMSO extraction producing water soluble xylan. The formulation of food packaging consist of tapioca starch, glycerol and xylan. The tapioca starch used to produce thin film, glycerol act as plasticizer while xylan used as film enhancement. The formulation of sample packaging was divided into five which are 0.0 wt%, 0.1, wt%, 0.3 wt%, 0.5 wt% and 1.0 wt%. From texture analysis, 0.3 wt% has the optimum formulation to produce food packaging from tobacco stalk. After obtaining optimum formulation, the formulation was added with 1.5 wt% of lemongrass essential oil for antifungal properties. Two samples were prepared to show the difference between the presence and absence of essential oil. Several test has been conducted to ensure that the food packaging is long lasting, has bio-degradable and antifungal ability and also to check the tensile of the food packaging. The end result show that 0.3 wt% with lemongrass essential oil can inhibit fungus growth compare to 0.3 wt% without lemongrass essential oil.